State law encourages holiday shoppers in New Mexico to buy from local merchants on the Saturday after Thanksgiving by providing a one-day gross receipts tax (GRT) exemption on qualifying purchases under $500. The law gives locals an incentive to support small, independent storefront retailers. For small businesses that have 10 or fewer employees, it’s a chance to give customers a discount without giving up revenue.

Small Business Saturday 2021 is November 27. The tax holiday begins at 12:01 am Saturday and ends at midnight the same day. Qualifying merchandise includes clothing, sporting goods, musical instruments, home goods, electronics, and more. Businesses with more than 10 employees and those operating under a franchise agreement do not qualify for the tax holiday.

For a list of items that qualify, visit the New Mexico Tax & Revenue Department’s bulletin.